Other: Standing Committee on Government Operations and Estimates—June 10, 2022

Document navigation for "Standing Committee on Government Operations and Estimates: June 10, 2022"

• Previous page
• Table of contents

Public Services and Procurement Canada fact sheet

Public Services and Procurement Canada at a glance (based on 2022 to 2023 Departmental Plan)

Public Services and Procurement Canada planned spending for 2022 to 2023

• $4,639,613,147

Public Services and Procurement Canada planned full-time equivalents for 2022 to 2023

• 17,580

Purchase of goods and services

• Purchasing goods and services at the best value for Canadians
• Providing effective, efficient, competitive and fair procurement services and processes for clients and other government organizations
• Current priorities:
  • supporting Canada’s response to COVID-19 pandemic
  • implementing procurement modernization initiatives
  • increasing bidders’ diversity
• Data for 2022 to 2023:
  • planned spending: $186,574,422
  • full-time equivalents (FTEs): 2,193

Property and infrastructure

• Providing federal employees and parliamentarians with work space
• Building, maintaining and managing federal properties and other public works such as bridges and dams
• Providing associated services to federal organizations
• Protecting the heritage of parliament and its surrounding buildings
• Current priorities include:
  • greening of property portfolio
  • advancing the definition of the post-pandemic work environment
  • working on the Centre Block and the Parliament Welcome Centre
  • continuing the implementation of the Laboratories Canada Strategy
• Data for 2022 to 2023:
  • planned spending: $3,438,255,690
  • FTEs: 4,650

Payments and accounting

• Collecting revenues and issuing payments
• Maintaining the financial accounts of Canada
• Issuing financial reports
• Administering the payroll and pension services for the Government of Canada (GC)
• Current priorities include:
  • making progress towards resolving outstanding pay issues for public servants
• Data for 2022 to 2023:
  • planned spending: $537,083,995
  • FTEs: 4,792

Government-wide support

• Providing administrative services and tools to federal organizations
• Helping protect sensitive government information and assets through security screening and controlled goods oversight
• Providing common technical solutions and operations support
• Providing information to Canadians
• Supporting the effectiveness of Government of Canada communications activities
• Current priorities:
  • providing agile and digitally enabled environment to enhance government-wide services and solutions
• Data for 2022 to 2023:
  • planned spending: $164,921,320
  • FTEs: 2,653

Procurement Ombudsman

• Operates at arm’s-length from federal organizations
• Legislated to review the procurement practices of federal organizations, review complaints from Canadian suppliers, and provide dispute resolution services
• Data for 2022 to 2023:
  • planned spending: $4,198,354
  • FTEs: 29

Internal services

• Internal services include:
  • management and oversight
  • communications
  • legal
  • human resources management
  • financial management
  • information management
  • information technology
  • real property management
  • materiel management and acquisition managements services
• Current priorities include:
  • using new technologies to better engage with Canadians and employees
  • increasing the representation of diverse and racialized groups within the organization
• Data for 2022 to 2023:
  • planned spending: $308,579,366
  • FTEs: 3,263

2022 to 2023 Main Estimates overview

• The $4,639.6 million of funding sought in the Main Estimates for 2022 to 2023 represents:
  • $2,866.8 million in vote 1 operating expenditures net of voted revenue
  • $1,610.4 million in vote 5 capital expenditures
  • $162.4 million for the statutory expenditures
• When taking into account the revenues of $4,242.7 million, the gross departmental budget is $8,882.3 million
• Previous year opening net budget of $4,491.2 million
• Net increase of $148.4 million which is attributable mainly to the combination of items outlined below:
  • increase of $117.3 million for non-discretionary expenses associated with Crown-owned buildings and leased spaces
  • increase of $30.7 million for procurement initiatives (budget 2021) to modernize federal procurement and diversify the federal supplier base
  • increase of $28.3 million for planning for capital and fit-up aligning to Public Services and Procurement Canada (PSPC)’s current funding approvals
  • decrease of $23.7 million for long-term capital investment plan (including employee benefit plans of $1.1 million). Capital vote 5 reflects PSPC’s current total funding approval of $1,611.6 million to deliver on its capital investment plan. The department will seek updated approval as required in order to maintain the quality of its infrastructure for the benefits of all Canadians

Portfolio organizations

• Canada Lands Company Limited
• Canada Post Corporation
• Defence Construction Canada
• Federal Public Sector Labour Relations and Employment Board
• National Capital Commission
• Payment in Lieu of Taxes Dispute Advisory Panel
• Procurement Ombudsman
• Shared Services Canada

Number of Public Services and Procurement Canada employees by region

• Source for PSPC FTEs across Canada: GC InfoBase—Infographic for Public Services and Procurement Canada
  • Atlantic: 2,914
  • National Capital Region: 10,783
  • Quebec: 1,449
  • Ontario: 638
  • Western: 659
  • Pacific: 556
  • North: 16
  • abroad: 5
  • not available: 65
  • total: 17,085
    • note: data by region dated March 2021 which explains difference with total FTEs in the Departmental Plan (DP) for fiscal year 2022 to 2023. FTEs are not published by regions in the DP but are broken down by core responsibility

Public Services and Procurement Canada’s Departmental Results Report: Year-over-year trends in targets met

• Over the last 3 fiscal years, when examining all departmental result indicators, year-over-year improvements over targets met went from 53.5% in 2018 to 2019, and 57.7% in 2019 to 2020, to 64.2% in 2020 to 2021. This represents a 20% increase from fiscal year 2018 to 2019 to fiscal year 2020 to 2021
• More specifically, the breakdown of results as they appear on GC InfoBase, is as follows:
  • in 2018 to 2019, there was a total of 71 indicators. Of the 71 indicators:
    • 38 (53.5%) met their target
    • 4 (5.6%) did not meet their target
    • 24 (33.8%) have no result available
    • 5 (7.0%) are to be achieved in the future
  • in 2019 to 2020, there was a total of 71 indicators. Of the 71 indicators:
    • 41 (57.7%) met their target
    • 6 (8.5%) did not meet their target
    • 22 (31.0%) have no result available
    • 2 (2.8%) are to be achieved in the future
  • in 2020 to 2021, there was a total of 67 indicators. Of the 67 indicators:
    • 43 (64.2%) met their target
    • 15 (22.4%) did not meet their target
    • 1 (1.5%) have no result available
    • 8 (11.9%) are to be achieved in the future
• In late 2019 to 2020, PSPC responded quickly to the COVID-19 pandemic through significant and sustained efforts to provide critical and essential services in support of the Government of Canada and Canadians, such as the procurement of supplies and equipment to protect the health and safety of Canadians
• In 2020 to 2021, PSPC continued playing a key role in supporting Canada’s response to the COVID-19 pandemic, impacting departmental results. For instance, there was a higher volume of demand on some services and significant resource reallocations to address urgent needs requests in some areas
• Results for 2021 to 2022 are currently being collected and will be published in the 2021 to 2022 Departmental Results Report in the fall of 2022
• 100% of ongoing departmental result indicators, as presented in the 2022 to 2023 Departmental Plan, have an established target. Results will be available through the 2022 to 2023 Departmental Results Report in the fall of 2023

COVID-19 and return to work (as of April 8)

Vaccines

• 121.9 million vaccine doses received:
  • Pfizer, Moderna, AstraZeneca, Johnson & Johnson, Novavax and Medicago approved
  • Sanofi started reg process
• $9 billion committed for vaccines and therapeutics procurement and for international support:
  • Pfizer 38 million in 2022, 30 million in 2023 with options for 30 million each year
  • Moderna 20 million in each 2022 and 2023, with options of 15 million each year
  • Novavax will supply 26 million in each 2022 and 2023 (purchased a total of 76 million for 2022 to 2024)
  • Medicago 20 million in 2022 (purchased a total of 76 million for 2022 to 2024, latest formula in last 2 years)
• Canada is working with Covax and bilateral agreements to donate any vaccine surplus

Therapeutics (as of May 4, 2022)

• 2.27 million treatment courses of 9 different therapeutics:
  • Paxlovid (Pfizer)—440 thousand delivered of 1.5 million ordered, 35 thousand expected before end of June
  • Remdesivir (McKesson/Gilead)—41 thousand ordered and delivered and an additional 50 thousand ordered in April 2022 with delivery starting in June 2022
  • Bamlanivimab (Eli Lilly) —17 thousand delivered
  • Tocilizumab (Roche) —12 thousand delivered of 14 thousand ordered
  • Regeneron (Roche) —9 thousand ordered, all delivered
  • Sotrovimab (GSK) —30 thousand ordered, all delivered
  • Sarilumab (Sanofi) —1 thousand ordered, all delivered
  • Molnupiravir (Merck)—501 thousand ordered, pending regulatory approval
  • Evusheld (AZ)—49 thousand delivered of 100 thousand ordered

Border testing

• 50+ contracts awarded for a total of $2 billion which include 4 border testing and 10 airport service contracts, valued at $1.1 billion for Switch, Dynacare, LifeLabs and Biron
• Switch Health—Awarded in February 2021 for day 1 and 8 testing (Ontario, Alberta, Atlantic); amended in April 2021 for testing for temporary foreign workers (TFW), asylum seekers (Alberta) and others (Ontario); expires on May 31, 2022
  • new contract awarded on June 1 for day 1 and day 8 testing (Alberta and Atlantic); expires on July 31, 2022
• Dynacare—Awarded in April 2021 for day 8 testing for TFW in Quebec; amended in July 2021 for additional testing services at ports of entry (Manitoba and Quebec). New contract awarded in January 2022 for day 1 and day 8 testing (Manitoba and Quebec); expires on July 31, 2022
• LifeLabs—Awarded in June 2021 for day 1 testing at the Vancouver airport, and day 1 and day 8 testing for British Columbia (BC), Yellowknife (YT) and Saskatchewan (SK). New contract awarded in February 2022 for border testing in BC, YT, SK, expires on July 31, 2022
  • new contract awarded for June 1 for day 1 and day 8 testing (Ontario); expires on July 31, 2022
• Biron Laboratoires Santé (Groupe Santé)—Awarded in December 2021 for day 1 and day 8 testing in Quebec, expires on July 31, 2022

Rapid tests

• 603 million rapid tests from 13 suppliers, cost of $4.09 billion:
  • PSPC acts on behalf of its clients, Public Health Agency of Canada’s (PHAC) and Health Canada
  • contract for 3.9 million testing kits with ProcureNet America terminated by mutual consent—could not meet order
  • 602 million tests delivered to provinces and territories and National Emergency Strategic Stockpile (NESS)
  • 28 suppliers qualified on competitive standing offer which was launched on March 16, 2021
  • Canadian companies qualified: BTNX—Toronto importer; Artron—BC manufacturer, bioLytical Labs—BC manufacturer
  • to protect commercial confidences, cost information for tests can only be presented as the total value of all contracts, as is shown on our COVID-19 contracting information page

Employee vaccination

• March 14, 2022, 188 employees have been placed on administrative leave without pay as a result of the vaccine policy since November 15, 2021 (approximately : 1%)

Personal protective equipment

• 2.7 billion articles purchased:
  • 191 contracts for personal protective equipment (PPE) to 120 unique suppliers
  • excluding long-term contracts (3M and AMD Medicom), 99% has been delivered
  • over 40% of expenditures are associated with Canadian companies
  • 42 contracts to self-identified Indigenous businesses ($198M) for logistics, information technology (IT) services, medical and laboratory supplies, masks, thermometers, etc
• 2 producers of National Institute for Occupational Safety and Health (NIOSH) masks in Canada, producing 4.2 million a month (Medicom—10-year contract and 3M—5-year contract for 38.3 million masks year 1 and 25 million thereafter)

Tango Communications

• Litigation underway
• Significant number of KN95 masks did not offer intended protection and have been disposed of

TCG Medical

• Litigation underway
• March 2020, TCG responded to proactive call on Buyandsell for N95 respirators
• May 6, 2020 issued contract (following screening and financial assessment)
• Supplier failed to meet mandatory quality assurance process, extended period of delays
• December 2020 supplier notified that PSPC would terminate contract for default unless it was fulfilled, terminated February 12, 2021
• Canada pursuing legal recourse to recover an advance payment

Contracting and advanced payments

• 564 COVID-19 related contracts (December 31, 2021)
  • 77 or 14% had advance payments, goods in high global demand
  • 484 (86%) awarded through competitive solicitation (154), limited tendering (41), and the made-in Canada call to action (289)
  • only 14% (80 of 564) were awarded non-competitively
  • at request of PHAC, PSPC invoked the national security exception and used sole source contracting authorities, which allowed the federal government to procure equipment and supplies as quickly as possible
• Advance payments are allowed in specific circumstances (for example, for software or for foreign military sales)

Essential Services Contingency Reserve

• The Essential Services Contingency Reserve (ESCR) was established in August 2020 to provide PPE to essential service businesses and protect front line workers
• In May 2021, the scope was expanded to include organizations serving social service sector and Indigenous communities
• As of May 31, 2022, 1,864 requests for registration, 758 orders for PPE through online portal were received
• Effective April 11, 2022, businesses and organizations in essential service sectors may access a short-term supply of PPE at no cost
• As of April 20, 2022, registered charitable or non-profit organizations in Canada can also access the ESCR inventory on GCDonate
• As of May 31, 2022, the ESCR inventory has a total of over 262 million units with a total cost of $58,339,890
  • nitrile gloves—184,181,091
  • disposable masks—43,471,200
  • surgical masks—21,896,000
  • face shields—4,174,697
  • KN95 masks—8,888,250
  • Coveralls—125,800
  • safety goggles—123,667
  • boot covers—26,200
  • 3 layer cloth face mask size large—63,685
  • Tyvek suits—512

Mobile health units

• 2 contracts were selected due to past expertise providing assistance to military
• Contracts were awarded for a value of up to $150 million and up to 10 mobile health units (MHU)s each
• 4 MHUs are ready for deployment. They include triage area, 2 resuscitation bays, 80 bed in-patient ward, 20 bed intensive care unit, diagnostic imaging
• As of May 27, 2022; $107.3 million was paid to Weatherhaven and $81.7 million was paid to SNC-Lavalin PAE
• As of April 1, 2022, PSPC consolidated the 2 contracts to one with Weatherhaven
• 2 MHUs were deployed to Sunnybrook, Hamilton
• An MHU oxygen concentrator, which provides extra oxygen to a patient, was deployed to a hospital in Yellowknife during the pandemic
• The oxygen concentrator was subsequently sold to the Northwest Territories for ongoing use by the hospital
• With the current military conflict in Ukraine, consideration is being given to whether one or more MHUs may be of value to Ukraine or surrounding countries in humanitarian relief efforts. No decision has yet been taken

Procurement

As the central purchaser, PSPC manages the procurement of goods and services valued at approximately $25.1 billion on behalf of client departments. In 2021 to 2022, PSPC awarded contracts on behalf of client departments for a total of $24.9 billion.

Procurement modernization

• Budget 2021—$87.4 million over 5 years, $18.6 million ongoing to leverage the procurement system to support Canada’s socio-economic objectives
• Procurement modernization includes the following initiatives:
  • contract modernization
  • vendor performance management
  • electronic procurement solution
  • accessible procurement resource centre

Electronic procurement solution

• In March 2020, PSPC soft launched Canada Buys, which is the new electronic procurement system (announced in Budget 2018, at a cost of $196.8 million over 5 years and revised in 2021, to $220.8 million over 5 years; an increase of $24 million):
  • it provides easy, web-based access to procurement services that, once fully deployed, will make procurement simpler, faster and easier for suppliers to find and bid on opportunities
  • this solution will also improve the management of procurement spending, increase efficiency and allow access to better procurement data

Supplier diversity

• Actions taken to ensure an increase in the diversity of bidders (women, Black and racialized Canadians, persons with disabilities and lesbian, gay, bisexual, transgender, queer, 2-spirit and others (LGBTQ+) Canadians)
  • coaching service
  • 2018 to 2020 socio-economic experimentation cycle
  • Black business procurement pilot
  • Policy on Social Procurement (May 2021)
  • Supplier Diversity Action Plan (January 2022)
  • completion of 3 requests for information (RFPs) for businesses owned or led by Black Canadians, persons with disabilities and the LGBTQ2+ community
  • developing training and guidance on gender-based analysis (GBA) plus and procurement
• 5% owned or led by Indigenous:
  • 42 contracts to self-identified Indigenous businesses ($198 million) in relation to COVID-19
  • from March 2020 to March 2022, PSPC, as a common service provider, has awarded $1.3 billion through 1,744 contracts to Indigenous suppliers
  • on April 25, 2022, Treasury Board of Canada Secretariat (TBS) in collaboration with PSPC and Indigenous Services Canada (ISC), implemented the policy and reporting framework for the mandatory minimum target of 5%

Amazon warehousing contract

• On April 1, 2020, PSPC on behalf of the PHAC, signed a 1-year $5 million contract with Amazon to get health care professionals the PPE and supplies
• This contract has never been extended
• On July 13, 2020, PSPC’s minister approved suspending the contract
• There have been no further activities beyond June 30, 2020 until the expected contract end date, such as March 31, 2021
• During the period that this contract was active, approximately $200,000 (taxes included) was spent

Accessibility

• In 2018, the Accessible Procurement Resource Centre (APRC) was established to help ensure that the goods, services, and construction procured are barrier-free for the broadest range of end users
• Ongoing work includes:
  • ensuring that accessibility is integrated in procurement policies and guidelines
  • developing learning materials and activities for procurement professionals to build capacity
  • leading an interdepartmental community of practice to scale up accessible procurement across the Government of Canada
• Recent actions for the APRC include:
  • piloting the new GBA plus “Creating an Equitable Procurement Environment” learning module that includes accessibility and social procurement considerations and scenarios
  • launching the interdepartmental Agents of Change for Accessible Procurement community of practice in January 2022
  • redesigning the APRC website to provide steps and relevant information resources when planning a procurement
  • developing a micro-learning video on steps to consider accessibility in procurement

Electric accessible shuttle buses

• A procurement instrument for full electric accessible shuttle buses has been awarded and another, for school and commuter buses, is being finalized
• In 2020, PSPC published a RFI for electric buses
• In April 2021, PSPC awarded supply arrangements for electric accessible shuttle buses
• Companies holding supply arrangements are Lion Electric and Vicinity
• School and commuter buses: In 2020 PSPC published a RFI for electric buses (included in the same RFI as above)
• No compliant bid were received in recent request for supply arrangements
• Discussions with industry are ongoing and specifications are being revised based on findings in order to allow for a successful procurement process in the future

Ethical procurement

• Under the National Strategy to Combat Human Trafficking (2019), PSPC:
  • contracted with Rights Lab for a risk assessment to identify risks of forced labour in the supply chains of goods procured by the department (May 2021)
  • updated the Code of Conduct for Procurement with clear expectations for suppliers as it relates to human rights and labour standards (August 2021)
  • implemented new anti-forced labour contracts clauses for all new goods contracts (November 2021)
• Potential issues identified with suppliers of PPE in Malaysia in December 2020
• Supermax Healthcare:
  • in October 2021, The US Customs and Border Protection Agency issued a withhold release order (WRO) against Supermax Corporation and its subsidiaries based on information that reasonably indicates their use of forced labour in the manufacturing operations of their disposable gloves
  • in January 2022, mutual agreement to terminate their contracts
• Sinopharm:
  • provided a declaration to PSPC in April 2021
  • all deliveries were completed in December 2021
  • 2018 implemented Policy on Ethical Procurement of Apparel
• Contract Security Program provides security screening for personnel and organizations to safeguard protected/ classified information:
  • PSPC when contracting includes security clauses
  • Contract Security Program ensures compliance

Military procurement 1 of 2

National Shipbuilding Strategy

• Long-term strategy
• 5 large ships delivered:
  • all 3 offshore fisheries science vessels to Canadian Coast Guard (CCG) (Canadian coast guard ship (CCGS) Sir John Franklin, delivered June 2019, CCGS Captain Jacques Cartier, delivered November 2019, and CCGS John Cabot, delivered October 2020. Built by Vancouver Shipyards (VSY)
  • 2 arctic and offshore patrol ships (AOPS) to Royal Canadian Navy (RCN) (Her Majesty’s Canadian Ship (HMCS) Harry DeWolf, delivered July 2020 and HMCS Margaret Brooke, delivered July 2021), next 3 under construction ($4.3B total). Built by Irving Shipbuilding (ISI)
• Construction and delivery of small vessels is also underway:
  • 7 hydrographic survey vessels, Kanter Marine (St. Thomas, Ontario)—delivered
  • 2 channel survey and sounding vessels, Kanter Marine (St. Thomas, Ontario)—delivered
  • 12 of 20 search and rescue lifeboats delivered, Chantier Naval Forillon (Gaspé, Quebec) and Hike Metal Products (Wheatley, Ontario)
  • acquisition of 3 medium commercial icebreakers, Chantier Davie
• Third shipyard, once qualified, will build 6 program icebreakers and 1 polar icebreaker for the CCG
• From 2012 to 2021, National Shipbuilding Strategy (NSS) contracts awarded totalled approximately $21.07 billion:
  • Irving Shipbuilding—$6.52 billion
  • Vancouver Shipyards—$5.26 billion
  • Chantier Davie—$2.26 billion
  • other shipyards/companies—$7.01 billion
• $979.59 million to small businesses with less than 250 full-time employees
• These NSS contracts are estimated to contribute close to $21.26 billion ($1.93 billion annually) to Canada’s Gross Domestic Product, and create or maintain close to 18,239 jobs annually, between 2012 and 2022

Next steps

• Umbrella agreement with third Canadian shipyard:
  • Chantier Davie pre-qualified
  • complex, multi-step qualification
  • package to include 6 program icebreakers and 1 polar icebreaker
• Chantier Davie will continue work under programs such as medium icebreakers conversions, Halifax class docking work period contract and Transport Canada ferries, in parallel with the third yard selection process
• Award implementation contract for Canadian surface combatant (CSC)

Large Ships and their status

• Arctic and offshore patrol ships: 6 vessels (AOPS 1 to 6) for the Royal Canadian Navy
  • first 2 AOPS delivered to RCN in July 2020 and July 2021; next 3 AOPS under construction
  • project budget: $4.3 billion
• AOPS: 2 vessels (AOPS 7 and 8) for the CCG:
  • work underway to modify design to meet CCG requirements
  • project budget: $1.5 billion (estimate)
• Canadian surface combatants: 15 vessels for the RCN
  • currently in design phase
  • Lockheed Martin Canada won the design competition (Alion and Navantia also competed)
  • Navantia matter before the courts, cannot comment
  • project budget: $56 - $60 billion (estimate without taxes)
  • parliamentary budget officer estimate February 2021 $77.3 billion, with taxes
• Joint support ships (JSS): 2 vessels for the RCN:
  • both JSS under construction
  • project budget: $4.1 billion
• Multi-purpose vessels (MPV): Up to 16 vessels for the CCG:
  • construction is expected to begin in the mid-2020s
  • project budget: $14.2 billion (estimate)
• Offshore fisheries science vessels (OFSV): 3 vessels for the CCG:
  • all 3 vessels delivered to the CCG in 2019 to 2020, marking completion of first class of large ships built under NSS
  • project budget: $788.5 million
• Offshore Oceanographic Science Vessel (OOSV): 1 vessel for the CCG:
  • build contract awarded in January 2021; construction started March 2021
  • project budget: $966.5 million
• Polar icebreakers: 2 vessels for the CCG:
  • engineering and construction of 2 polar icebreakers. announced in May 21
  • need delivery by 2030 when CCGS Louis St. Laurent to retire
  • project budget: to be determined

Defence and marine procurement 2 of 2

Future Fighter Capability Project

• Nearing completion of competitive process for CF-18 replacement:
  • competition launched in December 2017 for 88 advanced jets
  • right aircraft for right price, and multistep process allows us to explore all options:
    • 20% weighting for value proposition, which includes economic benefits, maximum points if contractual guarantees
  • $19 billion budget set as part of Strong, Secure, Engaged, project cost consistent with auditor general 2012 recommendation
    • acquisition of aircraft, associated equipment, infrastructure and setup (does not seem to include ISS)
  • July 31, 2020 bid solicitation closed, 3 proposals: Sweden SAAB, USG-Lockheed Martin, USG-Boeing:
    • all bidders subject to same evaluation criteria
    • criteria not written with one aircraft in mind, based on performing assigned missions and survivability of personnel
    • December 1, 2021, Canada announced that Sweden SAAB AB and the USG Lockheed Martin were eligible for the next phase of the procurement process
    • March 28, 2022 following rigorous evaluation, Canada announced it would enter into the finalization phase of the procurement process with the top-ranked bidder: the United states Government and Lockheed Martin (USG-LM)
    • April 21, 2022 a kick off meeting was held to discuss how joint strike fighter production, sustainment, and follow-on development memorandum of understanding, the economic benefit arrangements and other government to government agreements will deliver on all of Canada’s requirements and outcomes
    • work to award contract in 2022, delivery 2025

Other defence procurements

• 10 of 16 fixed wing search and rescue accepted, 4 delivered. Awarded to Airbus Defence and Space, contract value is $2.54 billion
• 80 of 360 armoured combat support vehicles, awarded to General Dynamics Land Systems-Canada based in London, Ontario and contract value is $2 billion
• Strategic Tanker Transport Capability:
  • replace CC-150 polaris
  • February 12, 2021 invitation to qualify published, April 1, 2021 Airbus sole qualified
  • directed RFP to Airbus released on May 13, 2022
• Military pistols:
  • RFP in Feb 2022 for 7,000 pistols, options for 9,500
  • RFP closes April 2022
  • replaces Browning High-Power 9mm (70 years old)
  • current process replaces process last year which was flawed (Rampart / Glock complaint with Canadian International Trade Tribunal)
• Remotely piloted aircraft systems:
  • request for proposal February 11, 2022, RFP close: August 11, 2022, contract award expected 2024
  • May 2019 prequalification
• CH-146 Griffon helicopters limited life extension:
  • sole-source award to Bell-Textron Canada Ltd. for upgrading 85 helicopters
  • work to continue to end of 2028
• C21 sniper rifles:
  • competitive process resulted in a $2.6 million contract to Stoeger Canada to deliver 229 new C21 sniper rifles
  • deliveries expected at the end of 2022

Office and precinct

Parliamentary Precinct

• Mandate commitment of advancing work to rehabilitate and reinvigorate places and buildings of national significance
• Long Term Vision and Plan (LTVP) approved in 2001 and updated in 2005 to 2006. Currently undergoing a second update to transform the precinct into an integrated campus beyond Parliament Hill
• Invested $4.2 billion in Parliamentary Precinct:
  • big accomplishments include Sir John A Macdonald, Wellington Building, West Block, Senate of Canada and phase 1 of the Parliament Welcome Centre
  • Centre Block is the largest heritage rehabilitation project in Canadian history
  • redevelopment of block 2 will transform a mix of functionally obsolete heritage buildings into a modern, sustainable and accessible facility for parliament
  • 60,000 jobs in engineering, architecture, construction, manufacturing and skilled trades:
    • 50 internships to date
    • Centre Block project expected to create additional 70,000 in its lifespan
    • 400 workers on site daily, rising to 1,500
• 90% of work in LTVP will flow to small and medium enterprises, 5% to Indigenous firms with 500 companies from across Canada
• Reduced greenhouse gases by 66% vs. 2005 to 2006 baseline, 95% by 2040
• Centre Block (CB) and Parliament Welcome Centre (PWC) projects advancing well:
  • estimated project cost is $4.5 to $5 billion
  • substantial completion of construction targeted for 2030 to 2031, with opening targeted for 2032
  • trompe-l’oeil decorative tarp (spring 2022) ($2.4 million on top of $1.5 million tarp cost)
  • CB demolition and abatement is approximately 70% complete, 16M lbs asbestos removed
  • PWC excavation 65% complete, 27,000 truckloads of rock removed
  • masonry rehabilitation of 400,000 stones, 5% complete overall (started on north façade)
  • restoration of over 20,000 heritage assets
• Work stoppages:
  • convoy—Work stopped from January 28 to February 21 due to protest, estimated cost $3 million, absorbed as part of risk envelope
  • strike—Overall impact of strikes halted almost all construction activity on-site for a period of 3 weeks. Schedule and cost impacts are currently under review and will be largely dependent on the length of the work stoppage, and increases in labour rates
• Block 2 design competition—next steps:
  • winner of the design competition was announced on May 16, 2022
  • engagement with the competition laureate to negotiate an architectural and engineering services contract
  • winning team: Zeidler Architecture Inc. (Toronto, Canada), in association with David Chipperfield Architects (London, United Kingdom)
  • we are finalizing negotiations for the design contract and establishing detailed functional requirements with parliament to create a baseline project budget. The baseline project budget is targeted for late 2022 with construction beginning in 2024
  • the construction estimate provided to bidders in the request for proposal is only a portion of a project cost estimate. The complete project cost estimate will be formed by a construction estimate based on a detailed scope, including final parliamentary requirements, and other significant cost items such as the cost for the design contract and all other professional fees, design and construction contingencies, IT and furniture, escalation and risk
  • Indigenous Peoples Space is not part of the block 2 development at this time, but there is flexibility to on-board it if desired by Indigenous partners

Laboratories

• Budget 2018 launched the Laboratories Canada Strategy—$2.8 billion investment
• Program mandate: modernize science facilities that enable science transformation and excellence for the benefit of Canadians; core goal is 21st century collaboration—not replacing old traditional labs with “like-for-like”
• Projects are organized by 5 shared science themes or hubs:
  • Atlantic Science Enterprise Centre (ASEC) in Moncton, improving sustainability of Atlantic fresh and coastal saltwater resources
  • Cultural Heritage Science, preserving cultural heritage for future generations
  • Transportation Safety and Technology Science, assessing and reducing transportation safety risks
  • TerraCanada, advancing sustainable resource development, low-carbon economy, and safety and health
  • Regulatory and Security Science, protecting Canada’s people, animals and plants, and supporting growth and innovation
• Active projects under way:
  • Terra Hamilton near completion
  • Terra Mississauga midway in full construction; ASEC has awarded architectural and engineering and construction contracts; most others are near concluding functional programming, the way of determining detailed collective requirements to then launch full design
• Program seeks to exceed targets for Indigenous participation, but beyond, it works with science partners to braid traditional knowledge with western science in the programming in these new facilities for decades to come

Supreme Court of Canada and West Memorial Building

• More than $1 billion being invested in the entire program of work which includes modernizing and conserving the West Memorial Building (WMB) and the Supreme Court of Canada Building (SCCB)
• WMB construction started in April 2020:
  • design and architecture contract: Moriyama & Teshima Architects and Kasian Architecture Interior Design
  • construction management services contract: EllisDon Corporation
• Work stoppages:
  • illegal demonstration—EllisDon, PSPC’s construction manager, was able to maintain site operations during the downtown protest. Site activities were limited at the onset of the protest and deliveries were cancelled due to the heavy traffic around site. During the week of February 7, EllisDon resumed site deliveries by closely working and coordinating with local authorities
  • strikes—The project has been impacted by recent construction industry strikes. Monitoring the situation and working with the construction manager to assess and mitigate the impacts of the strikes on the project schedule
• WMB to serve as interim accommodations from 2024 to 2032 while SCCB rehabilitation takes place
• WMB occupancy in 2024
• WMB vacant since 2008, requires major rehabilitation
• SCCB rehabilitation to start in fall 2024 when the building is vacant in order to undergo major construction. This will be the first time the building undergoes such important and extensive work:
  • RFQ for architect/engineer services published on August 9, 2020
  • RFQ for construction manager published on August 31, 2020

Affordable housing

Federal land initiative

• 4 PSPC properties are in the process of being transferred through federal land initiative (FLI)
• 3 are in Ontario region, while the fourth is in the national capital area (NCA). All are expected to be transferred this fiscal year, which will create an estimated 1,272 affordable housing units
• There are a number of PSPC properties that are being assessed for suitability for the program
• As the FLI funding is limited, PSPC is working with Canada Mortgage and Housing Corporation to develop a proposal to enhance the FLI program so it will have more capacity to address PSPC’s disposal plan
• Strategic disposals through the Canada Lands Company is committed to meet or exceed the municipal affordable housing requirements in development approvals (up to 20% in certain cities but a minimum 10% of its projects)

Accessibility

• The accessible government built environment initiative, which includes conducting technical accessibility assessments on a portion of the PSPC Crown-owned portfolio, is scheduled to be completed by March 31, 2024
• The department received Treasury Board expenditure authority in the amount of $26,430,000 to implement the accessible government built environment initiative
• COVID-19 delayed delivery of technical accessibility assessments
• To date, total of 111 technical accessibility assessments have been completed (approximately 31% of the portfolio based on the Real Property Services key facts 2020 to 2021 quarter 4)
• Assessments are being prioritized based on the Office Long Term Plan

Engineering assets

• 14 engineering assets
  • French River Complex: (includes Portage (1996), Little Chaudière (1998), Big Chaudière North (2016) and South (2016), Portage channel Bridge (1983)
  • Latchford (2016)
  • Rideau Falls complex: (East (1968) and West (1998) dams)
  • St. Andrews Lock and Dam (SALD—1910)
  • Timiskaming complex Ontario (2017) and Quebec (1932) dams
  • Burlington Lift Bridge (1962)
  • LaSalle Causeway (1917)
  • Des Allumettes (2015)
  • Des Joachims (1950)
  • JC Van Horne Bridge (1961)
  • Alaska Highway (1942)—running from British Columbia, through Yukon Territory, and to Alaska, USA
  • Esquimalt Graving Dock (1887)
  • Parc Portuaire de Trois-Rivières (1880)
• The portfolio also includes the Energy Services Modernization Program comprised of central heating and cooling plans as well as a distribution network
• Operating budget 2021 to 2022 (B123) for the engineering assets excluding is approximately $96,154 million

National Capital Region bridges

• 5 interprovincial crossings in National Capital Region:
  • PSPC manages Alexandra (built 1901), Chaudière Crossing (1919), Macdonald-Cartier (1965)
  • National Capital Commission (NCC) manages Champlain Bridge (1928), Portage (1973)
• Budget 2019—$490 million for replacement of Alexandra Bridge, rehabilitation, Macdonald-Cartier, Chaudière Crossing, refresh studies on sixth crossing
• Per Budget 2021, established joint PSPC and NCC project office for sixth crossing
• Alexandra Bridge:
  • 121 years old, historic engineering asset
  • 2018 third party life-cycle cost assessment examined multiple options
  • bridge replacement better value, less risk, and less disruptive to public
  • NCC held consultations in October 2020—2,300 participants, helped with vision; December 2021—1,800 participants and prepared summary report
• Separate engagement with Indigenous partners, as well as impact assessment agency of Canada conducting own engagement

Office

• PSPC Office Long Term Plan submitted to Treasury Board Secretariat in May 2021, with updates underway for 2022 to accelerate reductions and timelines
• Objectives are to improve overall asset condition through a recapitalized, modern, accessible, and green portfolio through base building investments; and support needed investments to improve the utilization of existing space
• Priorities are to recalibrate assumptions around the future of work, invest in ecosystems of space, and support funding for shared space
• Remote working arrangements, unassigned seating by default, and optimized use of Crown space are key enablers
• PSPC’s office portfolio is one of the largest in Canada, covering approximately 6.1 million square metres:
  • approximately half of the portfolio is located in the National Capital Area (about 53%). The remainder is distributed across Canada mostly in large metropolitan with some located in remote areas
  • a total of 52% of the office space is located in Crown-owned or lease-purchase buildings and 48% is located in privately owned buildings that PSPC leases in whole or in part
  • there are approximately 320 Crown-owned or lease-purchase buildings
  • examples of core Crown-owned buildings include:
    • Sinclair Centre, Vancouver
    • Winnipeg Tax Centre
    • Arthur Meighen, Toronto
    • Guy-Favreau Complex, Montreal
    • Carling Campus Building, Ottawa
    • East and West Memorial building, Ottawa
• For 2020 to 2021, the total operating costs for federal accommodations was approximately $2.2 billion
• The 20-year accrual budget for office recapitalization is approximately $9.5 billion

Return to work

• 1,500 leased and crown owned buildings
• Since November 15, 2021 all supplier personnel accessing federal workplace require to be vaccinated:
  • cleaning costs increased by 28%
  • utility costs—no change
  • parking revenues down 77%
• Pre-COVID-19 60% occupancy (at meetings, vacation, sick, or working remotely):
  • each department / agency responsible for its own return to work plan
  • assessing post-pandemic requirements, no final decisions
• Pathfinder project launched in August 2020
  • PSPC will continue to support a hybrid workplace
  • balance will be different across organization and will depend on operational requirements
• Occupancy monitoring initiative
  • PSPC is piloting and implementing an approach to leverage existing data (Wifi connections, access card swipes, reservation system) for occupancy measurement. PSPC produces a monthly dashboard that amalgamates current pilot participants data: National Defense, Treasury Board Secretariat, [Redacted] and PSPC. Expansion of the pilot is planned in the next quarter

Workplace Transformation Program

• An office accommodation program of projects based on GCworkplace standards. Designed to deliver activity-based workplaces via furniture-first solutions and repurposing existing constructed elements. Due to reduced scope, the projects are delivered in a shorter timeframe (1 to 2 years), and are more cost-effective than full fit-ups
• Phase 1—Approved since December 15 2021 for $150 million. 13 projects affecting 125,000 square meters of office space across Canada
• A pre-vetted list of national projects (subject to funding) drawn up for $850 million which could result in 550,000 square meters of modernized office space in the next 2-3 years

Clean technology / greening

• Reduce emissions related to office buildings
• Long-term strategy to procure 100% clean electricity for GC operations in accordance with the Greening Government Strategy
• 5 distinct approaches—4 involve securing local clean electricity (Alberta, Saskatchewan, Nova Scotia, and New Brunswick) (highest carbon grids); fifth approach to secure renewable energy certificates for remaining areas where local opportunities are not yet available / not cost-effective for GC
• Strategy will result in displacing an estimated 532,000 megawatt hours per year of high carbon electricity consumption
• Real Property Plastics Action Plan
• Reduce the embodied carbon footprint in construction projects (for example green concrete)
• Electric vehicles, including conversion to zero-emission vehicle (ZEV)
• For Crown-owned buildings, 2020 to 2021, 57.6% reduction in greenhouse gas (GHG)s compared to 2005 to 2006 baseline of remaining emission:
  • 19% reduction is expected by 2025 through the national clean electricity initiative (renewable energy certificates)
  • 40% reduction is expected by 2025 through the Energy Services Acquisition Program
    • $3.4 billion / 36 years
    • heating to 80 buildings, 67 cooling
    • 55,000 occupants, 1.6 million metres squared
  • PSPC is targeting an 82% reduction of GHG emissions by 2025 and net zero by 2030

Other

Translation Bureau

• Virtual Interpretation to support parliament:
  • employs 65 staff interpreters, 56 freelance interpreters (all work bidirectionally) (in 2019 to 2020, there were 76 freelance interpreters)
  • while the Translation Bureau hired 9 new interpreters in the last 3 years, it lost 12 interpreters who have retired
  • providing translation and interpretation services in Indigenous languages—The Translation Bureau has a roster of over 100 suppliers covering over 50 Indigenous languages and dialects

Departmental Oversight Branch

Integrity regime

• PSPC has consistently applied the integrity regime to all procurements in a manner consistent with the Ineligibility and Suspension Policy
  • no contracts have been awarded to a supplier that is ineligible or suspended under the Integrity Regime
  • currently, 3 companies are ineligible to do business with the Government of Canada due to convictions for a listed offence (Les Entreprises Chatel Inc., R.M. Belanger Limited and Les Industries Garanties Limitée)
  • one supplier has had their period of ineligibility reduced to 5 years pursuant to an administrative agreement which came into effect in December 2020 (Hickey Construction Ltd)
  • in 2018, the Government announced its plans to enhance the Integrity Regime
  • after considerable public discourse, government announced it was taking additional time to reassess elements of the proposed regime and next steps

SNC-Lavalin

• On May 11, 2022, the registrar of ineligibility and suspension signed an administrative agreement with SNC-Lavalin in response to September 2021 criminal charges
• This agreement lays out the terms that must be met in order for the company to continue to do business with the federal government and provides assurances that the company is actively addressing issues that led to the alleged misconduct
• Quebec Superior Court recently approved a remediation agreement between SNC-Lavalin and Quebec prosecutors to resolve September 2021 charges

GCcoworking data

• 47 departments onboarded since the beginning of the pilot project in 2019
• As of today, 17 departments have completed the return to work process in order to come back in our sites in a pandemic context, which includes departments that had not onboarded prior to COVID-19
• 8 sites are opened across the country:
  • in the NCR: L’Esplanade Laurier, Kanata, River Road, Orleans and Gatineau
  • in the regions: Laval, Vancouver and Toronto (Atlantic site in Dartmouth will open in summer 2022)
• Interest in GCcoworking continues to grow strong with an increase of user applications to GCcoworking, departmental inquiries for a presentation and departmental inquiries for tours

Lac Megantic

• Working with Transport Canada (TC) to acquire 105 parcels
• August 2020 AECOM submitted route for bypass
• Final version May 2021, with tweaks until March 2022
• Parliamentary motion May 2021 to complete by 2023
• October 2021 negotiations began with owners
• February 2022 letter co-signed by 3 mayors, requesting negotiation period extension by 3 months
• March 24, 2022 extension to August 12, 2022 announced
• Legal action by the Fédération de l'Union des producteurs agricoles-Estrie currently prevents 36 landowners from selling their lands to the Government of Canada
  • hearing on scheduled on July 6, 2022
• As of February 15, 2022, 43 offers submitted:
  • negotiating individually with each owner
  • property values determined by independent chartered appraiser
  • legal framework governing private treaty acquisition process does not allow for compensation for pain and suffering
  • cannot compensate property owners indirectly affected
  • will provide compensation in perpetuity to cover increased premiums due to change in insurance coverage where crossing present
  • expropriation considered as last resort if private negotiation does not result in agreement
  • PSPC representatives are present every week in Lac-Mégantic to meet, negotiate, and answer questions from owners

Pay

Outstanding pay transactions

• Continue to stabilize pay operations, and continue to deliver bi-weekly pay:
  • 3,000 system enhancements and fixes
  • McKinsey provided expertise to streamline processes and standardize work
• Improving performance in meeting standards (April 27, 2022):
  • outstanding financial transactions down 61% (reduction of 233,000 transactions) from 384,000 to 151,000 peak in January 2018
  • overall outstanding transactions down 47% (reduction of 297,000 from 633,000 to 336,000 )
  • met service standards for new pay transactions 80% of the time on average in 2021, compared to 72% on average in 2020, and 57% on average over 2018 to 2019
  • prioritize cases with high impact
  • parental and disability leaves processed within service standards 99% of the time, on average in 2021
  • processed close to $2.5 billion in collective agreement retroactive payments to employees for the 2014 round, and over $2 billion in collective agreement retroactive payments to employees to date for the 2018 round
  • very few serious pay issues (no-pay and low-pay) are escalated (only about 1.1% of escalated cases in 2021)
• Latest public figures on items in queue (as of April 27, 2022):
  • 336,000 transactions ready to be processed at the Pay Centre, including:
    • 151,000 transactions with financial impact, which include: 134,000 beyond Pay Centre’s normal workload, and 17,000 repatriated to home departments and agencies for processing and closure
    • 80,000 financial transactions that are part of Pay Centre’s normal workload
    • 54,500 transactions with no financial impact, or general inquiries
    • 7,000 collective agreement transactions
    • 43,500 transactions waiting to be closed for which employees have already received payment
  • while progress continues on eliminating outstanding transactions from the early years of the pay system, the current compensation environment has limited our ability to reduce the overall number of outstanding transactions
  • number of transactions received by Pay Centre has increased significantly over past year (+15% for April 2022 compared to April 2021)
  • retention challenges with employees
  • high complexity cases in the backlog
• Initial target of December 2022 for backlog elimination (based on pay operations in 2020 and the forecast of work required):
  • number of transactions received by Pay Centre has increased significantly over past year
  • retention challenges with employees
  • high complexity cases in the backlog
  • getting better: processed 55,000 more transactions in 2021 versus 2020 with fewer compensation advisors
  • received 178,000 more transactions in 2021 versus 2020
• We continue to focus on addressing outstanding transactions while also working towards processing new transactions within service standards 95% of the time. We are addressing challenges in a number of ways:
  • fast tracking our recruitment and hiring efforts
  • regularly reorganizing the workload so that the most complex transactions are assigned to our most experienced staff

Phoenix overpayments

• 353,000 identified as having received an administrative or true overpayment, total $2.97 billion. As of March 24, 2022:
  • 235,000 employees repaid, $2.4 billion recovered
  • 118,000 outstanding balance, $560 million
• Priority to recovering overpayments from 2016 to protect Crown’s right to recover (6 year statutory window, must acknowledge overpayment to access repayment flexibility):
  • Receiver General and Pension Branch has resumed collection of overpayments from pensioners
• In 2016, focus was on stabilizing system and supporting employees and focusing on most urgent cases and causing hardship

Investments: Key data

• Additional investment totals $2.134 billion:
  • McKinsey for accelerator services $27.7 million
• IBM for planning, design, build, implementation and in-services support of Phoenix—$545 million (original competitive June 2011, to December 2020: 50 amendments)
• Application managed services contract, competitive launch May 2019, contract until March 2023—$108.9 million
• Split of the IBM contracts:
  • amendments are a regular part of the contract management process. When managing a complex system, this approach provides the flexibility to adapt the required work as we learn more to meet program requirement
• Initial investment to build Phoenix $309 million (IBM contract, other professional services and program costs)

Next generation pay

• Shared Services Canada work is proceeding as planned and plan to submit a recommendation in spring 2023 on way forward

Pension administration

• In 2021 to 2022:
  • serving more than 935,000 active and retired members
  • PSPC issued over 5.1 million pension payments valued at $14.5 billion
  • 432,200 pension calls answered
  • For the 21st consecutive year, the Pension Program received an unmodified audit opinion from the Office of the Auditor General on the Public Service Pension Plan financial statements
  • 98% of pension payments processed accurately and on time
  • 100% of pension legislated changes were implemented accurately and within required timeframes
  • 98% of new pensioners received their first pension payment within 45 days of retirement
  • 96% of written and 99% of verbal pension estimates provided within established timeframes

Innovation (pension)

• The Pension Program successfully implemented innovative solutions to streamline service delivery to pension plan members and improve data quality

Receiver General

• In 2021 to 2022:
  • the Receiver General processed over 362 million payments, with $3.5 trillion in cash flow
  • payment volumes and values remained higher than pre-pandemic
  • for the 23rd consecutive year, the consolidated financial statements of the Government of Canada received an unmodified audit opinion from the auditor general
  • 99.99% of payments were issued within established timeframes
  • 100% of money paid to the Government of Canada reconciled within 2 business days
  • 100% of the information presented in the consolidated financial statements of the Government of Canada is accurate

Innovation (Receiver General)

• Implemented data sharing solutions with financial institutions to help combat payment related fraud
• Improved payment efficiency with the implementation of a cheque image exchange solution that allows government cheques to be cleared and reconciled more quickly which also identifies payment fraud in a more timely fashion

Modernization

• Over the next 20 years the Receiver General will begin renewal of the treasury and accounting programs, to ensure the long-term stability of these mission critical functions and to maintain services to Canadians

Document navigation for "Standing Committee on Government Operations and Estimates: June 10, 2022"

• Previous page
• Table of contents